Innovation is the only constant when looking at payment methods. While many digital wallets claim to offer the best user experience, Paze is coming to market this year and looking to gain adoption from merchants and customers alike. Designed with user-friendliness and low transaction fees in mind, will Paze offer more than just another way to make digital payments?
What is Paze?
Paze is a new digital wallet solution from Early Warning Services, a firm owned by the seven major banks that created Zelle in 2017. Unlike Zelle, which focuses on account to account transfers and platforms like Venmo, Paze is card-based and is not built from an app. Paze functions as a payment button on a merchant website into which users can load their cards. Paze, in seeking to make its mark in the industry the same way Zelle did, prioritizes ease of use to provide transactions that are smooth for all participants.
How Paze Operates
At its core, Paze's technology hinges on the principle of lowering transaction fees. By using a unique blend of technologies, Paze ensures that payments remain consistent, secure, and straightforward.
When Is Paze Launching?
Slated for a full rollout in 2024, Paze is currently undergoing its first stage of deployment, which consists of testing with thousands of wallets. Its upcoming launch in the United States could be a significant shift in the digital payment space, due to its low transaction costs and a streamlined integration process. With the backing of seven major banks, Paze is not just another digital wallet, it instead has potential to redefine how online transactions are managed.
Differentiating Paze from Other Digital Wallets
The digital wallet market is crowded, with many players vying for the top spot. According to Statisa in 2022 digital wallets accounted for 49% of total eCommerce transaction value.
Unlike many digital wallets like Venmo or Apple Pay, Paze is not app-based. It is adopted as a button on a merchant's website where users can load their cards directly. This reduces friction and ensures that users don't need to juggle between multiple apps for different transactions and authentication. Customers of the seven banks backing Paze will find that most of their cards have already been added to their Paze wallet making unboarding to Paze effortless and useful from the first push of the button.
So what sets Paze apart from other payment options?
- Major Backing and Integration: With the backing from the seven largest banks, Paze will go to market in the coming year with 150 million tokenized cards at general availability. This large initial adoption may make it an attractive option for merchants to adopt early. Moreover, its gateway-agnostic nature means that it can be used across various platforms, expanding its reach and functionality beyond that of traditional digital wallets.
- User Experience and Authentication: Paze has focused on a user-centric design. Apart from offering a clean payment experience, it provides flexible authentication options through mobile or email. While many digital wallets offer biometric security, such as fingerprint or face recognition, Paze's authentication methods are adaptable, catering to a broader range of devices and users.
- No Additional Costs: One of Paze’s standout features is its cost-effectiveness. Because Paze is gateway-agnostic, merchants are only responsible for the standard transaction costs, avoiding any additional fees. Additionally, Paze transactions may qualify for lower interchange rates as it utilizes network tokens as opposed to raw payment account numbers.
Paze and Zelle
While both Paze and Zelle simplify the online payment experience, they cater to distinct user needs and operate on separate paradigms. Paze distinguishes itself as an integrated button on a merchant's website, allowing users to load cards directly for transactions. It's not an app but a seamless part of the online shopping journey, emphasizing low transaction fees and flexibility in card storage. Not only can Paze be seamlessly embedded within a merchants checkout flow, it keeps a merchant’s PCI scope low, never exposing the merchant to sensitive cardholder details.
Zelle is primarily a peer-to-peer payment system, operating through affiliated banks and their respective apps, facilitating direct bank-to-bank transfers within the U.S. Moreover, Paze's backing from the seven largest banks ensures a vast array of 150 million tokenized cards at GA and offers a gateway-agnostic approach, a distinction from Zelle's operations. While Zelle focuses on simplifying bank transfers between acquaintances, Paze is designed to fit in the broader e-commerce payment landscape.
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Enabling New Payment Methods With Payments Orchestration
With an array of digital wallets in the market, selecting and adopting various payment methods is an area where payments orchestration shines. It’s not just about enabling a payment method; it's about optimizing the entire process and catering to a selective customer base.
Through payments orchestration, clients can enable digital wallets with multiple payment gateways, processors, and other solutions. Paze is built on a network token framework; as long as the gateway accepts network tokens, Paze can integrate, showcasing its gateway-agnostic capabilities. This interconnectedness means Paze users get the best transaction routes, ensuring faster and more secure payments.
Why Paze Is Going To Change The Game
As digital payments become the norm, platforms like Paze are setting new standards in terms of versatility, user experience, and transaction ease. Whether it's the promise of saving money on transaction fees or the potential unlocked by payment orchestration, Paze is undeniably a game-changer in the digital wallet space. With its clear distinction from other platforms and its forward-looking approach, Paze is well poised to revolutionize how we think about digital transactions.
Evaluate your need to accept alternate payment methods with Spreedly to see how options like Paze are changing the future of transacting!
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